Prices for old resettlement houses in Hanoi show signs of vertical increase

The selling price of old resettlement houses has increased sharply.

After apartment buildings, resettlement housing prices are starting to increase. Dan Tri reporters' observations at the Phap Van Tu Hiep urban area (Hoang Mai, Hanoi ) show that many resettlement apartments here are being offered for sale at around 33-37 million VND/m2. Although they have been in use for more than 10 years, apartment prices have recently peaked, 30-35% higher than the selling price in the third quarter of last year.

For example, in early June, a 73m2, 3-bedroom resettlement apartment was advertised for sale at nearly VND2.8 billion, equivalent to about VND36.5 million/m2. Meanwhile, in the third quarter of last year, the price of apartments in this resettlement housing area was commonly advertised for about VND23-28 million/m2.

Phap Van Tu Hiep resettlement area (Hoang Mai, Hanoi) (Photo: Ha Phong).

The current selling price of the resettlement apartment in Phap Van Tu Hiep is also equal to the price of many commercial apartments nearby.

An apartment at Hateco Hoang Mai apartment building, 79 square meters, is being offered for sale at 3.45 billion VND, equivalent to 43.6 million VND/square meter. An apartment at Tecco Skyville apartment building in Thanh Tri district, 53 square meters, is being offered for sale at 2 billion VND, equivalent to 37 million VND/square meter... Notably, the price of the commercial apartment building being offered for sale has only increased by 11-17% compared to the third quarter of last year.

According to a market research company’s April real estate market report, despite a sharp drop in interest and listings, Hanoi apartment prices are still high. Compared to March, prices for luxury apartments increased by 3%, mid-range apartments increased by 5%, and affordable apartments increased by 12%.

Recently, the supply of apartments has been scarce. In addition, the number of new apartment projects is mainly in the luxury and high-end segment.

The above situation is the reason why apartment prices in Hanoi have continuously increased and increased dramatically in recent times. In particular, the price of old resettlement apartments in some areas of Hoang Mai district has increased rapidly, equal to many commercial apartments in the area.

Is there a discount expected?

Assessing the apartment market, including resettlement apartments in Hanoi, many experts believe that in the coming time, when the strict regulations of the revised Law on Real Estate Business come into effect to ensure the transparent and healthy development of the market, the number of investors meeting the requirements to implement projects will decrease. Therefore, in the immediate future, the supply of apartments in Hanoi will remain scarce.

Meanwhile, the demand for housing is always present and increasing, especially in large cities. Therefore, expecting a sharp decrease in apartment prices is very difficult.

Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS) - said that the price increase of Hanoi apartments has occurred for 21 consecutive quarters.

"The Hanoi apartment market may cool down in terms of transactions, but prices are unlikely to decrease in the short term and are expected to increase due to supply bottlenecks caused by legal bottlenecks that cannot be resolved overnight," Mr. Dinh shared.

According to him, a housing project, if legally approved, needs at least 5 years from the time of implementing investment procedures to offering for sale, construction and putting into operation.

Therefore, according to Mr. Dinh, although the market supply will improve in the coming time, it will not be strong. The lack of supply will still be a painful problem for the housing market, making it difficult for apartment prices in Hanoi to decrease.

Source: https://dantri.com.vn/bat-dong-san/gia-rao-ban-nha-tai-dinh-cu-cu-o-ha-noi-lo-dau-hieu-tang-dung-dung-20240606111811227.htm